| 178 Annual Report | 2023-2024 Financials Note 41: Financial risk management (Cont'd) (C) Market risk a) Interest rate risk (i) Liabilities The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. As at March 31, 2024, the Company is exposed to changes in market interest rates through debt securities, other borrowings and subordinated liabilities at variable interest rates. Interest rate risk exposure Below is the overall exposure (*) of the Company to interest rate risk: Particulars As at 31 March 2024 As at 31 March 2023 Variable rate liabilities Debt securities - - Borrowings (other than debt securities) 4,37,343.51 2,49,645.59 Subordinated liabilities - 2,500.00 Fixed rate liabilities Debt securities 40,050.00 29,120.00 Borrowings (other than debt securities) 43,653.65 59,295.40 Subordinated liabilities 40,000.00 40,000.00 Liability against securitisation 41,003.55 72,139.97 Total 6,02,050.71 4,52,700.96 (*) Figures are presented at principal carrying value. Sensitivity The sensitivity of the statement of profit and loss is the effect of the changes in market interest rates on debt securities, other borrowings and subordinated liabilities. Below is the sensitivity of profit and loss in interest rates. Particulars Year ended 31 March 2024 Year ended 31 March 2023 Interest sensitivity* Interest rates – increase by 0.50% 2,530.71 2,016.23 Interest rates – decrease by 0.50% (2,530.71) (2,016.23) * Holding all other variables constant (ii) Assets The Company’s fixed deposits are carried at amortised cost bearing fixed rate of interest, hence sensitivity analysis is not been presented. Arohan Financial Services Limited Notes to financial statements for the year ended March 31, 2024 (Contd.) (All amounts in ` lakhs unless otherwise stated)
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